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Fidelity Bank attributes poor performance to strict regulations

By on May 11, 2014

The Managing Director, Fidelity Bank Plc, Mr. Nnamdi Okonkwo, on Thursday attributed the bank’s unimpressive performance in 2013 to higher cost of deposits arising from tight monetary conditions.

Okonkwo said this at the bank’s ‘facts behind the figures’ session at the Nigerian Stock Exchange in Lagos.

He said that the Asset Management Company of Nigeria upward review of levy on total assets from 0.3 per cent to 0.5 per cent increased the bank’s operating expenses to N4.6bn from N2.2bn in 2012.

Okonkwo said that the introduction of 50 per cent Cash Reserve Ratio on public sector funds in August 2013 also contributed to the bank’s poor performance.

“We sustained average monthly income reduction of N520.5m between August and December 2013,” he said.

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